Tesla(US:TSLA) First Shanghai Securities·2025-08-12 07:22Group 1: Company Research - SMIC - SMIC's Q2 2025 revenue reached $2.21 billion, a year-on-year increase of 16.2%[7] - The company's capacity utilization rate improved to 92.5%, up 2.9 percentage points from the previous quarter[7] - SMIC's gross margin was 20.4%, down 2.1 percentage points quarter-on-quarter[7] - The forecast for Q3 2025 revenue is expected to grow by 5%-7%, reaching $2.32-$2.36 billion[7] Group 2: Financial Metrics and Valuation - Target price for SMIC is set at HKD 60.00, representing a potential upside of 23.20% from the current price of HKD 48.70[5][10] - Projected revenue CAGR for the next three years is 25.0%, with net profit CAGR expected at 90.0%[10] - SMIC's market capitalization is approximately HKD 388.93 billion, with 7.99 billion shares outstanding[6] Group 3: Risks and Market Conditions - Risks include potential underperformance in capacity expansion and semiconductor cycle downturns[11] - The demand for 8-inch and 12-inch wafers is expected to grow, with ASP forecasted to increase in Q3 2025[8] - The company is positioned as the third-largest foundry globally, holding a 6% market share, which has increased by 0.5 percentage points[8]